What is Derivatives? — Meaning, Definition & Example
Definition
Derivatives are financial instruments whose value is derived from an underlying asset like stocks, indices, commodities, or currencies. Main types in India are Futures and Options (F&O). Derivatives are used for hedging risk, speculation, and arbitrage. SEBI regulates derivatives in India.
A farmer can use commodity futures to lock in a selling price for wheat before harvest, protecting against price drops — that is hedging with derivatives.
🇮🇳 Derivatives in Hindi / हिंदी में
डेरिवेटिव्स — डेरिवेटिव्स वित्तीय साधन हैं जिनका मूल्य शेयर, इंडेक्स, कमोडिटी या मुद्रा जैसी अंतर्निहित संपत्ति से प्राप्त होता है।
Derivatives (Hinglish) — Derivatives wo financial instruments hain jinki value underlying asset (stocks, indices, commodities) se derive hoti hai. Futures aur Options main types hain.